India - Merger & Acquisition News

[IU]

Punj Lloyd buys 74% stake in UK's Technodyne

MUMBAI: Construction and engineering firm Punj Lloyd Ltd said on Tuesday it had acquired a 74 percent stake in UK firm Technodyne International Ltd for an undisclosed sum. Technodyne is a specialist engineering, design and consultancy firm with expertise in steel and steel-plus-concrete tanks and test rigs, Punj Lloyd said in a statement.

"This acquisition is a strategic fit and further enhances Punj Lloyd's existing tankage and terminal business," it said. Indian firms have announced overseas deals worth nearly $10 billion since the start of the year, Thomson Reuters data shows.

[maritimer]

Tata, M&M in race for GM's Hummer Source: Economic Times

After the acquisition of Jaguar and Land Rover, Indian auto companies rank high in the global M&A pecking order. Merchant bankers are learnt to have approached both the Tatas and Mahindras for General Motors’ (GM) iconic brand, Hummer.

The all-American SUV and pick-up brand, which is often associated with both US military might and sheer Hollywood style machismo, is up for sale as announced by top GM executives earlier this week.

[zhiemi]

Areva sells REpower stake to Suzlon

Paris: Areva said it has sold its 30% stake in REpower, for a capital gain of over $540 million, after losing a bidding battle for control of the German wind turbine maker.

Areva said it sold the stake to India’s Suzlon Energy, which acquired REpower last year after five months of wrestling with the world’s biggest nuclear reactor maker. French state-owned Areva and Suzlon signed a cooperation agreement in May 2007, under which Areva would maintain its stake in REpower, and become the preferred supplier to Suzlon in the field of electricity transmission and distribution.

The agreement also gave Areva a guaranteed selling price that would create a gain of more than 350 million euros. REpower is one of Germany’s biggest wind-turbine makers and is one of the world’s leading companies in the wind energy sector.

Source: TOI

[zhiemi]

M&M buys Italian firm.

New Delhi: Utility vehicle maker Mahindra & Mahindra has signed an agreement to acquire Italy’s twowheeler design firm Engines Engineering SpA, for an undisclosed sum.

“M&M has signed an agreement with Engines Engineering SpA, agreeing to acquire 100% stake in Engines Engineering Srl, the new legal entity which will be formed by transferring the business of Engines Engineering SpA,” the company said.

The transaction is subject to receipt of necessary approvals. “M&M through Systech has been looking at acquisition of a reputed design house,” Mahindra Systech president Hemant Luthra said, adding it would enable the company to penetrate into Europe, and countries like China and Russia. MD Anand Mahindra said, “Mahindra Systech has the mandate to build globally competitive businesses in selected verticals and this acquisition greatly enhances our capability to do so. The acquisition gives impetus to scale up the company’s business, he said.

Source: TOI

[IU]

Tanla buys 85% stake in Finland based Openbit for $18.6mn

Hyderabad-based telecommunications software and services company Tanla Solutions has acquired Finland-based on-device payments for mobile applications provider Openbit Oy in an all-cash deal.
...
The remaining stake held by Openbit's management will be purchased by Tanla in two tranches of five per cent and 10 per cent after the first and second year, respectively.

[zhiemi]

Trikona Capital announces 150 million dollars deal with SachsenFonds

New York, June 6 (ANI/Business Wire India): Trikona Capital Ltd ., the leading fund management firm for institutional investment in Indian real estate and infrastructure, announced it has extended its relationship with SachsenFonds Holdings GmbH, a German fund manager with 7.5 billion dollars under management, in a 150 million dollars deal that includes minority stakes of current Trikona assets and investments in new projects.

As part of the 150 million dollars deal, Sachsen will join Trikona as co-investors in a 40 million dollars investment in Mumbai to refurbish four acres of middle-class housing and build high-end luxury homes as part of Trikona's urban rejuvenation platform. Sachsen will contribute 55 per cent of the investment cost.

[india]

Originally Posted by maritimer

Tata, M&M in race for GM's Hummer

Pinch me! ... Ouch!

[maritimer]

Idea to pick up 40.8% stake in Spice Source: NDTV

Idea and Spice may be merging soon – a deal between Idea, Telekom Malyasia and the Modis is expected to be signed under which Idea will buy into Spice after which a merged entity will be created.

Idea is most likely to buy out the Modi's stake in Spice, which is about 40.8 per cent for about Rs 72 a share netting the Modis around Rs 2000 crore. After the deal Idea is likely to merge Spice with itself giving Telekom Mlaysia which owns about 39.2 per cent stake in Spice, a proportional stake in the merged entity.

[maritimer]

RCom, MTN inch closer to sealing merger deal

Reliance Communication and South African telecom company MTN are close to signing a deal to merge the two entities. While the structure of the merged entity has been finalised, issues related to pricing and country-specific regulation are being thrashed out by the two sides.

According to sources close to the deal, both sides have agreed on a 35:100 swap formula whereby RCom shareholders will get 35 shares of the merged entity for every 100 RCom shares they hold.

If the deal goes through, the merged entity will be valued at an estimated $36 billion, with revenues of over $14 billion and an operating profit of nearly $6 billion. This is the second time that RCom is trying to woo MTN for a possible alliance, and this time sources close to the negotiations said the deal should be announced in a week.

Source: Business Line

[IU]

Cadila buys 70% stake in South Africa-based Simayla Pharmaceuticals

Cadila Healthcare has acquired 70% in South Africa`s Simayla Pharmaceuticals for an undisclosed sum. The acquisition will be effected through its unit, Zydus Healthcare SA.

As per the agreement reached between the two companies, the remaining stake will be held by the promoter of the company.

The company recently forayed into Spain with the acquisition of 100% stake in Laboratorios Combix.

[IU]

Sadbhav Engineering to buy 74% stake in Hong Kong based Ocean Bright Corp

MUMBAI: Sadbhav Engineering, a construction firm, on Monday said it will acquire 74 per cent stake in Hong Kong based Ocean Bright Corporation Limited (OBCL) for an undisclosed amount.

The acquisition was carried out through the wholly owned subsidiary of the company Sadbhav Natural Resources, which entered into an agreement to acquire 74 per cent stake in OBCL, the company said in a filing to the Bombay Stock Exchange.

[maritimer]

Cognizant buys US co Strategic Vision

Cognizant Techology Solutions on Monday said that it has acquired Strategic Vision Consulting, Inc (SVC), a management and technology consulting firm with over 60 employees serving the media and entertainment industry.

SVC, based in Los Angeles in the US, focuses on consulting and systems implementation for media and entertainment companies, including studios, broadcasters, post-production facilities and interactive media companies. In addition, SVC provides technology strategy and planning, and program and project management services.

This is Cognizant’s ninth acquisition in recent times.

Source: Business Line

[IU]

^ Congnizant is an American company


Sujana Towers close to acquisition in South Africa

Mumbai: Hyderabad-based Sujana Towers is close to acquiring a South African tower manufacturer and the deal is likely to be struck in ten days. "Sujana Towers has already zeroed in on the target and signed an agreement with the target company. Some regulatory issues are to be resolved. The deal is likely to be announced within ten days," market sources said.

[phaedrus]

cross posting from the Indian Auto Industry thread


Tata Motors to pursue more buyouts

Days after wrapping up the $2.3 billion Jaguar-Land Rover deal, Tata Motors on Tuesday indicated that its appetite for acquisitions is still not over and that the company is always on the lookout for opportunities in acquisitions and alliances.

In a notice sent to shareholders seeking approval on various issues related to the company's fund raising plans, including for the acquisition on the two British marques, the company said it was open to further such plans. "The company has major growth plans for expanding its product range and presence in the domestic and global markets in commercial and passenger vehicles, including through strategic alliances and acquisition opportunities," Tata Motors said in the notice to its shareholders.

And just as it signalled its willingness to scout for further opportunities, it also said it plans to raise as much $1 billion in debt or equity from overseas markets. The company sought shareholders' consent for raising up to $1 billion (equivalent at current exchange rate to about Rs 4300 crore) through issue of Foreign Currency Convertible Bonds (FCCBs) or equity shares in the international market, the circular said.

Besides, it also sought shareholders' nod for raising the company's borrowing limit to Rs 20,000 crore. As part of its long term funding plan, Tata Motors would raise Rs 7,200 crore through three simultaneous but separate rights issues to part-finance its $2.3 billion buyout of British luxury brands Jaguar and Land Rover.

The shareholders nod have also been sought to raise $500-600 million (Rs 2,700 crore) in international market, which would be out of the approval sought for $1 billion.

Tata Motors said it would continue to pursue its growth plans in the commercial and passenger vehicle businesses in India and overseas through introduction of new products, setting up, expanding and modernizing its manufacturing facilities and investing in technology supported by focused and strong sale, distribution and service set up. "These would be appropriately funded over the next few years," the company added.

The company has sought approval for an increase in the authorized share capital to Rs 3,900 crore comprising of ordinary shares aggregating to Rs 700 crore and 'A' ordinary shares worth Rs 200 crore and convertible cumulative preference shares worth Rs 3,000 crore. Under its rights issue programme, it would issue 'A' ordinary shares carrying differential voting rights for up to Rs 2,000 crore on rights basis.

'A' shares would have voting rights at the rate of one vote for every 10 'A' ordinary shares. Except the voting rights, the 'A' shares would rank the same as the ordinary shares of the company and would be the holders would be entitled for dividend, bonus issue among others, the circular said.

The company also disclosed some of the financial details of Jaguar and Land Rover in the circular. It said the "profitable" brands had sale of 2.86 lakh units in 2007 and the business recorded revenues of $15 billion in the year.

source economictimes.com

[phaedrus]

cross posting from the Indian Auto Industry thread

Hero Electric plans overseas acquisition

Electronic bike maker Hero Electric plans an overseas acquisition of a motor and controller components maker in electronic vehicle segment.

"We are in talks with three or four foreign companies, which are in the field of motor and controller parts, for the purpose of acquisition. However, it will take some time to get things materialised," Hero Electric Chairman Vijay Munjal told reporters.

Munjal, however, refused to divulge the names of the companies with which Hero Electric was negotiating.
The company, at present, is sourcing motor and controller components from China, which include battery and its charger that are the critical parts for an electronic bike.

Hero Electric, a subsidiary of Hero Exports, will also be hived off as a separate company. "We are in the process of hiving off Hero Electric Devices Private Limited as an independent company and it will be done soon," Munjal said.

Enthused over achieving tremendous response for its products, the company has decided to infuse Rs 80 crore in capacity expansion, setting up a research and development centre at Ludhiana and ramping up dealers' network.

"Presently our e-bike manufacturing capacity is 220 units per day per shift which is expected to reach 440 units per day per shift after next two years. Besides, we also plan to expand our dealers' network to 300," he said.

The company is aiming to sell 70,000 units in this year, against selling 20,000 units during first year of its operation, he said.

source economictimes.com

[phaedrus]

Ranbaxy promoters sell stake to Daiichi

In one of the biggest buy outs of any Indian company by an MNC, Japanese major Daiichi Sankyo has picked up the promoters - Malvinder Singh and Shivinder Singh's - 34.8% stake at Rs 737 per share in drugmaker Ranbaxy Labarotaries. ( Watch )

This means complete exit of Ranbaxy promoters from the company. However, the senior Singh (Malvinder Singh) is expected to continue to head the management for sometime.

The Japanese company will also make a mandatory open offer, as per the Indian laws, to buy an additional 20% stake in the company. According to sources, Daiichi Sankyo plans to hold a controlling 51% stake in the Indian company.

The deal represents a major foray into the field of generic drugs by Daiichi Sankyo and would be the latest in a string of large overseas acquisitions by Japanese drug makers.

Shares in Daiichi Sankyo, best known for its high blood pressure medication Benicar and the experimental blood thinner prasugrel, ended nearly 5 per cent higher on early reports of a deal while Ranbaxy's shares were also up.

The total transaction value is expected to be worth between $3.4 billion to $4.6 billion, the companies said in a statement.

"There's a global move to generics and Japan's a bit behind on this," Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management, said after reports of the deal.

"India is a large market but even more important is the fact that Ranbaxy operates in a number of other countries. That's the real merit," he said.

source timesofindia.com

[IU]

Gammon acquires stake in 2 Italian firms

MUMBAI: Construction company Gammon India on Wednesday said it has acquired 50 per cent and 75.1 per cent stake respectively in two Italy- based companies, Sadelmi Spa and Franco Tosi Meccanica Spa, through its offshore subsidiaries for 47.5 million Euro (over Rs 315.85 crore).

Gammon has acquired 50 per cent stake in Sadelmi, a company engaged in balance of plant mainly for the power sector for Euro 7.5 million.

Besides, Gammon acquired 75.1 per cent shareholding in Franco Tosi Meccanica engaged in the manufacturing of steam turbines for thermal and hydro-electric plants for 40 million Euro.

[ajay_ijn]

Originally Posted by sn1101

Ranbaxy promoters sell stake to Daiichi
source timesofindia.com

That should be the second biggest inbound M&A. we have seen many except Vodafone-hutch. a bit surprised though, indias largest pharmaceutical co selling off.

Ranbaxy sell-off a shock for industry
http://timesofindia.indiatimes.com/B...ow/3121585.cms
MUMBAI: In the domestic pharmaceutical industry, there was a time when no one wanted to take on Ranbaxy in the marketplace. Aggressive, ruthless and fast moving - Ranbaxy won all the big games. It had the most number of brands among local companies in the top 20 pharmaceutical products.

Even four years ago, no one would have predicted today’s endgame. Ranbaxy, fresh from clocking a record $1 billion in sales, had big plans for the developed markets like US and Europe.

It had set its sights on emulating the Israeli company Teva Pharmaceuticals, which is the only company in recent times to crack the code of selling off-patent medicines and launching its own research products in the US. Ranbaxy was clearly headed there.

So, to most analysts and consultants in the pharmaceutical industry, Ranbaxy’s sale to Japanese company Daichi comes as a rude shock.

As one of India’s earliest entrepreneurial companies to stop the march of multinational drug companies, does the sale mark an end of era in pharmaceutical industry.

Ranbaxy’s clout came from copying patent drugs of multinationals and launching them across in India through its vast sales network. In the early nineties, when multinational companies had 200-400 medical representatives, Ranbaxy had more than twice as many.

With lower manufacturing and selling costs, it ruled the roost. In 1989, it launched its best selling antibiotic Cifran at Rs 18 a tablet when multinationals were selling it at Rs 40 a tablet.

Cifran became an overnight hit, clocking sales of Rs 50 crore in two years, a record unheard of in those days. Though visionary managing director Parvinder Singh realized this model wouldn’t last for long and embarked on R&D, till the late nineties Ranbaxy made most of its money from the domestic market. Ranbaxy’s global foray, though made losses in the initial years, starting paying off in the first few years of this century.

But, in last three years, intense competition from local companies have whittled profits in US market, while its new drug research programme has not paid even after 20 years in existence.

At the same time, its clout in domestic market has also vanished. With patents act coming into force in 2005, Ranbaxy can no longer copy and launch new drugs in India. Several Indian firms like Wockhardt, Sun and Zydus Cadilla had mastered act making market place less profitable. The number of successful launches of drugs of Indian companies has fallen by 70% in the last two years.

[IU]

IFGL acquires Hofmann Ceramic of Germany for undisclosed sum

KOLKATA: Kolkata-based IFGL Refractories Ltd (IFGL) has entered into an in-principle agreement for purchase of 96.16 percent stake of Hofmann Ceramic GmbH of Germany and 100 percent stake of Hofmann OHG.

The purchases will be effected by IFGL's step down subsidiary, Monocon International Refractories Limited in Britain, a company release said on Thursday.

The acquisition of Hofmann entities will enable IFGL and its subsidiaries in Brazil, China, Britain and the US - presently engaged in manufacture of specialised refractories and operating systems for the producers of iron and steel - to diversify and serve the foundry industry, besides giving the group two manufacturing bases in the EU.

Hofmann entities are predominantly engaged in the manufacture of ceramic filters and other refractories for the foundry industry. Their operating facilities are located at Breitscheid-Erdbach in Germany and City of Bela in the Czech Republic.

[ajay_ijn]

Telekom Malaysia picks up additional 15% in Idea for $2 bn
http://economictimes.indiatimes.com/...ow/3127470.cms
NEW DELHI: Telekom Malaysia is understood to have picked up a little less than 15 per cent stake in Aditya Birla group company Idea Cellular at a price of Rs 158 a share through a preferential offer paying above 2 billion dollars for the acquisition.

This values the Birla company over 10 billion dollars. The preferential offer has been made to Telekom Malasyia (TM) at a substantial premium to the current market price of Idea Cellular. Idea's scrip closed at Rs 108.25 on BSE today. Its market cap stood at Rs 28,527 crore.

Sources said Telekom Malaysia (TM) is learnt to have paid Rs 158 a share for about 15 per cent additional stake in Idea Cellular. Idea would now buy out the Modi's 40.8 per cent stake in Spice Communications and merge with it and TM would have 20 per cent equity in the merged entity.

While an Idea spokesperson declined to comment on this, the company in a filing to stock exchange said the company keeps pursing growth opportunities and can not comment on the reports of TM picking up 15 per cent additional stake in Idea Cellular and as and when any definitive proposal of any nature is considered and approved by the company's board, the company shall inform the exchange.

Had Idea not made the preferential offer to TM, the Malaysian company's stake in the merged entity would have remained at about 5.14 per cent corresponding to its 39.5 per cent stake in Spice Communications after the merger.

The deal was hanging on TM's insistence on a 20 per cent stake in Idea cellular post merger with Spice and it had put this as condition to let the acquisition of Modi's stake by Idea happen, said sources.